While running a business or a company, the company owner has to face multiple issues, among which is the issue of growing expenses such as the expanses of travelling, hotel or maybe any payment that the company needs to pay to his employees while sending him for any business-related meetings, training, etc. Hence, to check its expenses, the company issued certain cards to its corporate employees. Such cards are known as corporate cards.
Unlike credit cards, corporate cards are specially designed to establish companies’ expenses that are often needed for training or business-related meetings. With the help of these cards, the corporate employees could pay the business expenses on behalf of the employees, such as expanses of the travelling tickets, foods, lodgings, etc. Such cards may provide a 100% liability or may provide the shared liability among the company and the individuals. These corporate cards are designed to be used at every location, just like credit cards.
Now, one can wonder why these types of corporate cards are being issued when there is a massive usage of credit cards? The answer to this question can be gained from the following points that defied its benefits to the corporate employees and employers.
Some benefits of using the corporate cards are as follows:
- Control on expenses: The Corporate cards often help the candidates to create the expanse analysis report by providing an accurate classification of all related transactions and, due to the usage of the Corporate cards, storing expense-related information of all employees of the specified organization, which in turn help the financial department of the organization to analyze the expanse data more accurately and efficiently.
- Reduction of the expanse fraud: There is always a scope for the expanse fraud in any organization. The employees need to pay by themselves while attending business meetings and business trips. After collecting the receipt, they must submit the expanse receipt to the company for reimbursement. But here, there is a high chance of making an expansion fraud. Adding an extra amount to the Restaurant receipt copies and buying business class fare often lead to fraudulent expenses. But with the usage of the Corporate cards, the organization can reduce the expense fraud as all the payments can be made through the cards only, where the allotted amount can also be limited.
- Provide Cash rebates: The employers and the employees could be benefitted from cash rebates on every purchase. The refund can differ from 1% to 5%, depending on the card bearer.
- Easy way to expense management: Using corporate cards often makes the expense-related management processes easy. The direct information about the card-related statements within the expanse report usually allows the detailed transaction to be arranged for the organization’s benefit.
- It increases employee satisfaction: The corporate cards can positively influence the employees. All the expenses related to the business tours and entertainment programs are done from the organization’s account with the help of corporate cards.
The introduction of corporate cards is the perfect choice for companies to handle their business credentials and check its expenses.